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@nate0404 wrote:
For simplicity i will use the fico 4 scorecard as the basis for my question.
I understand that fico 4 has 8 clean buckets and 2 dirty buckets. I have read that the presence of a major derogatory no matter the age will put you in one of the two dirty buckets, I have also read that the presence of a public record will put you in the dirtiest of the two dirty buckets. Is this true?
I have also read that your credit score is determined by comparing your credit profile to all other credit profiles in your bucket. Is this true?
I have read that by july the credit reporting agencies will remove a large number of public records from consumers reports for failing to meet certain criteria.
I assume when the public records of those consumers are removed from their credit reports, they will be rebucketed.
I will also assume that, in general, the presence of a public record is a strong indicator of irrisponsible credit habits.
If Those things are true, then it seems that those of us that are still in the less dirty bucket because of older derogs with otherwise "good" profiles should see a nice increase in scores when all of those with public records join the less dirty bucket?
My theory relies on the fact that the credit profiles of those in your bucket, do indeed play a roll in determining your score.
What do you think?
I had a old lates and a tax lien (all from 2010) on both EX and EQ when the lates were excluded, I lost points. FICO 04 and FICO 8 both, and that's a pretty good indicator that I experienced a re-bucketing.
We really don't have a good handle on scorecard segmentation, but over the past month as various negative pieces of information come off at different times and correlating that with some information found by others for at least FICO 04 and 98:
Clean (well, more appropriately no major derogatory scorecards, I have pretty conclusive evidence 30/60D are not considered major when combined with published literature)
PR only
PR + lates (could be presence of any other second negative marker, not enough data to tell yet).
They were seperate scorecards on FICO 8 too, but there's 4 dirty buckets; I think age is the split between 2 and 4 scorecards based on some behavior I've seen on FICO 8 but I have no actual data around that.
End of the day, don't presume that you'll gain points shifting buckets as now you're compared against an entirely new set of data even if the maximum score for that given scorecard is theoretically higher; in my case, I sucked less in the worse bucket and as such I lost points when shifting between dirty scorecards.
@nate0404 wrote:
For simplicity i will use the fico 4 scorecard as the basis for my question.
I understand that fico 4 has 8 clean buckets and 2 dirty buckets. I have read that the presence of a major derogatory no matter the age will put you in one of the two dirty buckets, I have also read that the presence of a public record will put you in the dirtiest of the two dirty buckets. Is this true?
I have also read that your credit score is determined by comparing your credit profile to all other credit profiles in your bucket. Is this true?
I have read that by july the credit reporting agencies will remove a large number of public records from consumers reports for failing to meet certain criteria.
I assume when the public records of those consumers are removed from their credit reports, they will be rebucketed.
I will also assume that, in general, the presence of a public record is a strong indicator of irrisponsible credit habits.
If Those things are true, then it seems that those of us that are still in the less dirty bucket because of older derogs with otherwise "good" profiles should see a nice increase in scores when all of those with public records join the less dirty bucket?
My theory relies on the fact that the credit profiles of those in your bucket, do indeed play a roll in determining your score.
What do you think?
Although articles MAY state you are compared against other profiles in your scorecard, that's rather misleading. You are scored based on the signal strength (weighting) of factors as defined by the scorecard. All profiles in a given scorecard are subjected to the same criteria but, there is no forced ranking or grading on a curve.
For the most part moving from a dirty to a clean scorecard will result in a score boost because major derogs have such a negative influence. Going from one dirty scorecard to another may or may not boost score.
It has been widely publicized that a public record is an assignment criteria for dirty scorecards.Having one may very well dictate which of the two Fico 04/Fico 98 dirty scorecards a profile is assigned. Example tax lien => D2, 90 or 120 day late => D1. While scorecard assignment may not change as long as PR is on file, it is generally thought the impact of PRs on score can lessen over time.